Licensing arrangements:
A) are per se violations of U.S. antitrust laws.
B) should undergo rule of reason analysis.
C) should be subject to strict scrutiny analysis.
D) are unlikely to raise antitrust issues.

Question

Quizplus · Accepted Answer

Despite their restrictive potential, licensing arrangements can maximize consumer welfare by ensuring that new technology reaches the marketplace in the quickest and most efficient manner. Further, by guaranteeing that new ideas realize their maximum return, they encourage the development of new technology. For these reasons, the Justice Department has recommended that licensing agreements undergo rule of reason analysis.

Licensing Arrangements